Living in Andorra
In Andorra, income tax caps at 10% and there is no wealth or inheritance tax. Housing is expensive, passive residence thresholds have been raised twice since 2025, and children must attend school.
The essentials · live · July 2026
For comparing where to live: personal tax, cities, drawbacks.
6/10
Liberty
Equal weights, higher is better
0–10%
Income tax
0%
Inheritance
Banned
Homeschool
Tax and rules
- Income tax : 0–10%
- Inheritance : 0%
- Homeschool : Banned. Compulsory school attendance.
The real drawbacks
- Families wanting to homeschool (banned in our grid)
- Budgets that underestimate rents and housing access
- Anyone seeking 0% income tax
Who it fits
- Europeans wanting to stay a few hours from Barcelona or Toulouse
- Anyone who loves mountains, skiing and a very safe country
- Employees or entrepreneurs ready for a real life on the ground
Cost of living and cities
Andorra la Vella and Escaldes-Engordany form the main urban area, in a narrow valley that concentrates shops, government offices and services. Higher parishes (La Massana, Ordino, Canillo, Encamp) are quieter and give direct access to the slopes. The country has around 80,000 inhabitants.
There is no airport or railway station in the country: Barcelona and Toulouse serve as reference airports, about three hours’ drive away. Winters are snowy and some mountain-pass roads can be difficult. The currency is the euro; Catalan is the official language, and Spanish, French and Portuguese are widely spoken.
Housing is the main friction point: limited supply, high rents and a tax on foreign real-estate investment (Law 3/2024, amended since). Our grid scores property 4/10. Secure a lease before filing for residence, as the address is part of the documents.
Personal tax and residence
Andorran IRPF is capped at 10%, and the first €24,000 of income is exempt. Our grid summarises it as 0–10%. There is no wealth tax and no inheritance or gift tax. The consumption tax (IGI) is 4.5% at the standard rate.
Andorra taxes its tax residents on worldwide income, with tax treaties that limit double taxation (France, Spain, Portugal and Luxembourg, among others).
For French nationals, the France–Andorra tax treaty deserves a careful read, and the home country keeps the upper hand until the centre of life has moved. A passive resident must stay at least 90 days a year; that immigration threshold does not settle the tax question at home.
Family, school and healthcare
Andorra runs three public school systems: Andorran, French and Spanish. A French or Spanish family can keep its home school system. Homeschooling, however, is banned in our grid: school attendance is compulsory.
Active residents contribute to the CASS, Andorran social security; passive residents must hold health insurance. The national hospital covers routine needs, and complex cases are often referred to Barcelona or Toulouse.
Visa, pace and daily life
Two main routes exist. Active residence covers employees of an Andorran employer and entrepreneurs established locally. Passive residence targets people living on outside income, with at least 90 days of presence a year.
Passive residence thresholds changed twice recently: Law 5/2025, then Law 2/2026 in force since 13 February 2026, sharply raised the required investment, and the deposit with the AFA (Andorran Financial Authority) is no longer refundable. Do not rely on amounts read online: check them with the immigration service.
Prepare a criminal record, proof of means, insurance and a lease before filing. Day to day, the pace is that of a mountain valley: close-at-hand administration, social life built around skiing and hiking.
Andorra suits a European employee or entrepreneur who wants to stay close to France and Spain and can pay a high rent. Families who want to homeschool will have to look elsewhere.
Common mistakes: relying on old passive residence amounts; forgetting the foreign real-estate investment tax; planning to homeschool; neglecting the tax treaty with the home country.
Living here
Main cities
No city cards for this hub in Ranking yet.
Liberty scores
Overall score (equal weights) : 6.0/10
See the numbers
| Criterion | Andorra |
|---|---|
| Tax | 5.5 |
| Money | 6.5 |
| Economy | 7.5 |
| Property | 4.0 |
| Self | 5.0 |
| Space | 7.0 |
| Infra | 6.5 |
Ranking Liberty-mode scores 0–10. Higher is more favourable for that criterion.
Personal taxation
| Income tax | 0–10% |
| Inheritance | 0% |
Indicative Ranking labels: verify local law.
Homeschooling
Banned
Compulsory school attendance.
Indicative status (self axis): verify local law.
Compare in Liberty mode Living-here page
FAQ
What is the income tax in Andorra?
IRPF is capped at 10%, with the first €24,000 exempt. There is no wealth tax and no inheritance tax.
How much do you need to invest for passive residence?
Thresholds were raised by Law 5/2025 then Law 2/2026, and the AFA deposit is no longer refundable. Check current amounts with the authorities before committing.
Can you homeschool in Andorra?
No in our grid: school attendance is compulsory. The country does have three public school systems.
How many days must you spend in Andorra?
At least 90 days a year for a passive resident. Your home country applies its own tax residence tests.